In this article we applied strategies for money management as a contribution to investment.
In these days of rising costs and wages that do not increase obviously in proportion to these costs, it is rare to invest even more money, more pay for the bills. However, if one of these privileged few who play for money, here are some tips to manage your money from your investment.
To do the only thing you do not want to use is to make more money than you can afford to invest. So the first thing you have to do is to determine how much to pay you the required calculations. Then you need to know how much you add to this amount if you want the lifestyle you can live comfortably. Finally, you want to add more than 2% of your annual salary by that amount in case of emergency, because they are doing and pop-up can.
What remains is what you invest each year.
Divide this amount to the district. Say, you can invest $ 10,000 in one year. For convenience, this means that if you lose money you are not worried. Okay, now you have to invest up to $ 2,500 per quarter. There is a reason that you do in the area.
The next you want to do is decide what you are in. That is where most people fall into the trap of throwing all their eggs in one basket, because someone told them to invest a little “you.” It’s not really when it comes to investments, if your money in a low yield account. This is not to invest. It is actually save and leave interest rates now, when you die, your money only. There is almost no benefit from it, your money in a savings account, even a CD in the short term. Prices are pathetic.
What do you want your share is $ 2500 and $ 833 each in 3 parts. After doing so, you might want to take some of your money and invest it in something with such relatively low-risk bonds. Current bond interest rates are 4-6%. As for the term that is yours. Some people like 30-year bonds, which is available for their retirement. Others, such as bonds, giving them a return in a year or two. Choose what is right for you.
After your investment with low risk, then go for something with a little more risk with your next $ 833. Maybe something like a mutual fund. Investment funds are a little riskier, because they are a mix of stocks and bonds. Because the fund is diversified in itself, reduces the risk. If part of your fund loses money the other party are more than likely to offset this loss.
Finally, to choose your last 833 million, which will decrease at high risk, like a hot broth that looks like it. Obviously, researching this, if you for a title that you are looking to make the best chances for a good return quickly. Make sure you see this stock all day. Select sell a place where you want. For example, say the stock at $ 10 per share and you bought 80 shares for $ 800 bought. You can choose to sell you and pocket your profits as soon as the stock lasts $ 20 per share, want to double your money. When stock is hot, what happen in a few weeks. It is a good return for the work of a few weeks. On the other hand, you must decide an amount per share is released under the stock before the sale or $ 5 per share. This way, you lose half your investment.